Federal Reserve asset acquisition: a proposal, panel discussion
A weekly perfect foresight model of the nonborrowed reserve operating procedure
Of the many studies analyzing the Federal Reserve's post-October 6, 1979 nonborrowed reserve (NBR) operating procedure, none has focused upon weekly money market dynamics under rational expectations. This paper employs the rational expectations assumption in an explicit institutional model of the NBR procedure. The paper is positive rather than normative, isolating the policy elements that comprise the procedure and investigating their dynamic interaction.
Industrial development and the convergence question
The paper studies endogenous world balanced growth equilibria in which national learning productivity differentials govern relative per capita products. Learning productivities depend on the national share of world specialized-goods production, national and world scale, and familiarity with the foreign economy. Familiarity indexes the extent to which imported specialized goods enhance learning productivity. We find that mutual familiarization causes per capita products to converge. Unfamiliar economies diverge substantially and persistently. Unilateral familiarization of a less-developed ...
Recent financial innovations : courses, consequences for the payments system, and implications for monetary control
An abstract for this article is not available
Interest rates and the conduct of monetary policy
The paper describes key aspects of actual Federal Reserve interest rate targeting procedures and addresses a number of issues in light of these stylized facts. It reviews the connection between rate smoothing and price level trend-stationarity. It critiques interest rate targeting as inflation tax smoothing. It argues that stabilization policy implemented by interest rate targeting may inadvertently induce martingale-like behavior in nominal rates and inflation. The paper explains why central bankers prefer continuity of the short rate and indirect rate targeting. Lastly, it surveys empirical ...
The phases of U.S. monetary policy : 1987 to 2001
An alternative method of estimating the Cagan money demand function in hyperinflation under rational expectations
This paper contains a description and implementation of a new strategy for estimating the Cagan money demand function under rational expectations.